By Omolabake Fasogbon
Development Finance Institution and United Kingdom Impact investor have announced a commitment to invest not less than $1 billion in Africa’s businesses in 2021.
The commitment was made at the UK-Africa Investment Conference as part of efforts to expand CDC Africa portfolio with new investments.
African markets targeted for the investment included: Egypt, Ethiopia, Kenya, Nigeria and other continent’s harder-to-reach frontier markets, where significant development gains can be made.
The commitment will enable CDC to invest in great African entrepreneurs and SMEs, while driving inclusive growth and job creation across the continent, where over half of the institution’s portfolio is now invested.
Specifically, the fund will be invested in financial institutions, infrastructure and climate, services, manufacturing, agriculture, real estate and technology.
Speaking further on the deal, Chief Executive Officer of CDC, Nick O’Donohoe said, “2020 was a challenging year for African economies and businesses, which have been heavily affected by COVID-19.
“As an impact investor and DFI, CDC is committed to providing long-term investment particularly in challenging times. As FDI continues to drop, we maintain our steadfast commitment to African businesses as they play a leading role in accelerating the continent’s economic and human development. “Alongside our partners at the Foreign Commonwealth and Development Office and Department for International Trade, we have focused our efforts on preserving the development gains that have been hard won over the last twenty years and ensuring Africa’s recovery from COVID-19 is inclusive and sustainable.”
In the past three years, the organisation has invested more than £2.7 billion to expand African businesses. In 2019, CDC’s investments supported over 320,000 direct jobs in Africa, contributing close to $1.5 billion in taxes to local economies, while in 2020, it pumped over $1 billion to the continent to support economic recovery efforts from COVID-19.